Answered: Which of the following is a belief of…

Which of the following is a belief of classical theory? A. Long-run full employment B. Inflexible wages C. Inflexible prices D. All of the above answers are correct

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Aggregate Demand And Supply

Section: Chapter Questions

Problem 17SQ

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Question

Which of the following is a belief of classical theory?

A. Long-run full employment

B. Inflexible wages

C. Inflexible prices

D. All of the above answers are correct

Expert Solution

Step 1

Macroeconomics is a part of economics that explains economic behavior as a whole. It discusses the concepts of employment, output, inflation, national income, etc. The classical theory of income and employment is one of the important theories of economics. It is propounded by Adam Smith and David Ricardo.

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